Do I need a permit for short-term rentals in Lakeway?

**Yes**, Lakeway requires all short-term rentals to obtain a biennial Short-Term Rental License. You need to submit an application and pass a fire safety inspection to be compliant. The cost for this required license is $450, and it needs to be renewed every two years to remain valid. (54 words)

What is the TOT tax rate in Lakeway?

**7% TOT** is the Hotel Occupancy Tax rate that the City of Lakeway requires on short-term rentals. You need to collect this tax from your guests in addition to the state's 6% rate. Remit the collected taxes to the appropriate city department according to the established schedule, or face penalties. (52 words)

Are short-term rentals allowed in Lakeway?

**Yes**, short-term rentals are allowed in Lakeway, but they are subject to specific regulations. You need to obtain a Short-Term Rental License and adhere to occupancy limits based on the number of bedrooms. Failure to comply with these regulations may result in fines or the revocation of your permit. (50 words)

How much does an STR permit cost in Lakeway?

**$450** is the fee for the required biennial Short-Term Rental License in Lakeway. You need to pay this fee when you submit your application to the city. This license is valid for two years, after which you must renew the permit and pay the associated fee again to continue hosting. (52 words)

Can renters host on Airbnb in Lakeway?

**No**, tenants are not permitted to host on Airbnb or other short-term rental platforms in Lakeway. The regulations specify that only property owners can apply for and obtain the required Short-Term Rental License. Renters are restricted from operating short-term rentals without direct authorization and licensing. (49 words)

Lakeway, TX Short-Term Rental Laws & Regulations

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100%

Forensically verified with 3+ official sources

Verified: Jan 30, 2026

3 Official Sources

Summary

The City of Lakeway requires all short-term rentals (stays less than 30 days) to obtain a biennial license and pass a fire safety inspection. The city imposes a 7% Hotel Occupancy Tax in addition to the state's 6% rate, and occupancy is strictly limited based on the number of bedrooms.

Restriction Level

⛔

Strict

Score: 41 (moderate)

Why this classification:

•Moderate permit fee: $450
•Limited to 1 property per owner
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in Lakeway, you must first get a permit from the City's Building and Development Services department. This permit costs $450 and lasts for two years. You'll need to show you have $1 million in insurance and pass a safety inspection. Once permitted, you can't have more than 10 guests at a time, and you must collect and pay a 7% city tax every quarter. Note that if you are in an HOA, they can still ban STRs even if the city allows them.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$450

Processing Time

30-45 days

7 Things Hosts Often Miss

1.One Property Limit: Owners are generally limited to one STR license within the city.
2.Insurance Requirement: You must have a $1,000,000 liability policy that specifically mentions STR use.
3.Occupancy Limit: Never exceed 10 adults regardless of how large the house is.
4.Local Contact: You must provide a local contact who can respond to complaints 24/7 within one hour.
5.Zoning Restrictions: STRs are only permitted in specific residential zones; verify your property's zoning before applying.
6.HOA Authority: City licenses do not override private HOA restrictions or bans on short-term rentals.
7.Permit Display: Your city license number must be clearly displayed in the first line of any online listing (Airbnb, VRBO, etc.).

Regulation Details

Eligibility(8)

•Lakeway does NOT require the property to be a primary residence. Investment properties are allowed.
•Lakeway, TX: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Lakeway: You can have a co-host or property manager help manage your listing.
•Lakeway, TX: You can have a co-host or property manager help manage your listing.

Requirements(21)

•Lakeway STR warning: Zoning Restrictions: STRs are only permitted in specific residential zones; verify your property's zoning before applying.
•Lakeway, TX: Hosts must report their rental activity quarterly to the city, even if platforms collect taxes.
•Lakeway, TX: You must display your permit/registration number on your Airbnb listing.

Application Process(12)

•Lakeway STR permit - Step 1: Verify Zoning. Check the Lakeway Zoning Map to ensure your property is in a zone that allows STRs. Time: 1 day.

Fees & Costs(2)

•Lakeway: Insurance Requirement: You must have a $1,000,000 liability policy that specifically mentions STR use.
•Lakeway charges a registration fee of $450 (biennial).

Taxes(2)

•Texas has a state sales tax of 6% that applies to STR rentals.
•Lakeway charges a Hotel Occupancy Tax of 7%. This applies to stays under 30 days. Note: State portion is remitted by platforms; City portion usually required to be remitted by host.

Limits & Restrictions(9)

•Lakeway limits stays to a maximum of 29 nights.
•Lakeway occupancy calculation: Two adults per bedroom plus two additional adults; maximum 10 total guests per unit.. Count your bedrooms to determine your max guest limit.
•Lakeway: One Property Limit: Owners are generally limited to one STR license within the city.

Safety Requirements(1)

•Lakeway requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Floor plan showing exits must be posted, Evacuation routes must be posted.

Penalties(3)

•Lakeway, TX: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Lakeway: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(3)

•Lakeway: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Lakeway, TX: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Lakeway exempts the following from STR regulations: long-term rentals (30+ days).

Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other Texas Markets

Dallas

Texas

Moderate

Dallas currently requires short-term rental registration and a 7% local Hotel Occupancy Tax. While the city passed a strict ordinance in 2023 that would have banned STRs in single-family residential zones, a June 2024 court injunction has temporarily blocked the city from enforcing those zoning restrictions and certain operational rules.

Permit required

0.1% total tax

Rockport

Texas

Moderate

The City of Rockport requires all short-term rental operators to obtain an annual permit and undergo a safety inspection. Hosts must collect and remit a combined 10% local Hotel Occupancy Tax (8% City, 2% County) in addition to state taxes.

Permit required

0.2% total tax

El Paso

Texas

Permissive

The City of El Paso does not currently have a dedicated short-term rental permit or ordinance. However, all hosts are legally required to register and remit a 7% Hotel Occupancy Tax (HOT) to the city, in addition to Texas state-level taxes.

0.1% total tax

Frisco

Texas

Moderate

The City of Frisco requires all short-term rental hosts to obtain an annual permit and pay a $300 fee. Hosts must collect and remit a 7% city occupancy tax monthly in addition to the 6% state tax. Regulations include mandatory safety equipment, emergency contact posting, and a prohibition on renting to individuals under 21 years of age.

Permit required

0.1% total tax

Lakeway

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(8)

Requirements(21)

Application Process(12)

Fees & Costs(2)

Taxes(2)

Limits & Restrictions(9)

Safety Requirements(1)

Penalties(3)

Exemptions(3)

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Frequently Asked Questions

Related Content

Other Texas Markets

Dallas

Rockport

El Paso

Frisco

Lakeway

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

Frequently Asked Questions

1Do I need a permit for short-term rentals in Lakeway?

2What is the TOT tax rate in Lakeway?

3Are short-term rentals allowed in Lakeway?

4How much does an STR permit cost in Lakeway?

5Can renters host on Airbnb in Lakeway?

Related Content

Other Texas Markets

Dallas

Rockport

El Paso

Frisco